Vatamin, Both Buyer and Seller in 94582

After having reading quite a lot, I think I can summarize what 99% of RE Pros are repeating everyday ......

Asked by Vatamin, 94582 Thu Dec 18, 2008

Nobody has a crystal ball to tell so you cannot know when it is the bottom. So it's a great time to buy, because the price will be up again.

This is a problematic logic, isn't it?

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Answers

6
Three things are certian:

1. Home loan interest rates are still near all-time lows.

2. Homes are selling for far less than they were just 5 years ago.

3. There is always risk in buying any home/investment.

We can't predict when the market will recover, but those who buy a home now are likely to realize sizable gains in years to come. Of course it's impossible to time the market exactly at the bottom... making an informed decision, however, is a factor no matter what.

If you need more information on today's real estate trends, feel free to contact me via my website or 916-838-5752.
0 votes Thank Flag Link Sun May 15, 2011
What you have heard is a true but standard answer. In my market place of Atlanta Georgia "experts" say we dropped 20% since 2006. However I look at what is available today. At our high we had 110-114,000 homes on the market, for 4 million people. Now we have 81,000. In the fast climbing market we had 60-65,000 homes available. Now a great majority of the available homes are forclosure or pre-forcloser homes. As an investor now is a great time to buy as we are not yet at the place where people wakeup and feel that they missed the bottom and start to buy before prices or rates rise at put them out of the market.
0 votes Thank Flag Link Thu Apr 30, 2009
I agree with you, but 99% of RE Pros that are here bloging and answering questions are now just experiencing this market. The other 1% have seen this market, knew what they need to do to survive... they are still the only RE Pros that survive this market... why? Because this is our profession not our hobby.
Gerri is one of the 1% that saw this market before, and she is right, homebuyers forget the true meaning of home ownership, you have to build equity by paying down your principal, not by relying on your neighbor that hope fully they sell their house $50k more than it's worth for.

The only thing I learned from my old broker is that this is a cycle, it will come back up again. So just like buying stocks, buy low, sell high.
0 votes Thank Flag Link Thu Apr 30, 2009
True Story: July 1989 at the very top of the market I sold a Glendale home for $590,000. From that day on it started to decline in value. In about 1992 it foreclosed at 475,000 and again a couple of years later around 400,000. The market was depressed from 1990-1997. Things stablized around 1997-98 but prices stayed at around the same as mid 90s, and # of home sales did not increase much but buyers not paralyzed by fear of the market were buying. In 2001 things went from a ho hum "normal pace" to more rapid as the economic news got better and hence there was less fear and lots of buyers came out to buy. In 2003, I sold that same home for $1.025. 000. The value went to about 1.250 during the "bubble years" and now in 2009 it is worth about 1M again. While no one can predict the market, real estate has always been, over time, a good investment. Most fortunes, dot.coms excluded, are made in real estate. Buy to hold and live in it. A home is for your lifestyle and dreams. It is an asset you can actually use and enjoy. A side benefit is that over time it makes you some money, probably a bigger sum than you can make in your job or stocks or 401K over the years. But that should not be the primary objective of home ownership. We lost touch with the real "value" of homeownership over the past few years and had unrealistic expectations. Unrealistic expections in lending, unrealistic expectations in what our return on investment should be and how quickly it will happen, and on and on. Oh, and another thing...renters are paying a mortgage, its just not their mortgage, it is someone elses. And your landlord, who knows the value of real estate over time, thanks you. Landlords hold property over time so as to build their retirement portfolio. Why not build your own over time? Those waiting for the market prices to drop further need to realize that the home prices do not drop in a vacuum. If and when they drop again, it will happen in a lot of bad and fearful ecomonic news. It will sound like doomsday. It will make that waiting buyer even more fearful. The regular guy does not act during a fearful time. Hence, he will not buy until economic news gets better, and that better economic news will be positive because it will be reporting a rise in home sales, and the bottom will be passed and the waiting buyers will then all rush out to buy and create an artificial rise in home prices...again.
0 votes Thank Flag Link Wed Feb 18, 2009
We really cannot predict "how low" the market will go...even with our expereince. If we could..we would also know when to invest in real estate. Many agent have purchased property in this market.
What we do know, however, is that interest rates are low, home prices are down, and there is available tax credits for first-time-homebuyers.
If you are considering buying (or have been looking) there are many good reason to buy now.
0 votes Thank Flag Link Wed Feb 18, 2009
No we do not have a crystal ball. However, you won't know we've hit bottom until it's past and too late to react. It's a great time to buy NOW! Not only are prices down but so are the interest rates. What are you waiting for?
0 votes Thank Flag Link Sun Jan 18, 2009
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